Houses Are Overpriced Crap

“Is anyone else struggling to find anything to buy??

We have been looking for over 6months and all the houses are overpriced cr*p!! (looking on the hibiscus coast.)

even the ones that are reasonable are so overpriced I refuse to spend the next 25years working my **** off paying for it!!

i can’t believe we have spent so much money getting here, we lost everything in the uk housing crash, have a tiny deposit, but we do have good well paid jobs but still can’t find anything that i want to bring kids up in, can afford and would be happy that we all wouldnt get ill in!!

12 thoughts on “Houses Are Overpriced Crap

  1. The official figure in this recession is that they are still 25% overvalued, but someone told me the unofficial figure was more like 40%, which is the same rate at which rental housing is overpriced.

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  2. http://www.interest.co.nz/property/59759/no-wholesale-move-banks-sell-people-out-their-homes-bank-lobby-group-says-responding-

    ‘Things have never been worse for property owners’

    Hope’s comments come after Terralink said its figures show 524 mortgagee sales between January and March, 100 more than during the same period of 2011, and more than the previous first quarter record of 519 in 2010 when New Zealand was “at the height of economic recession.”

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  3. I remember that advertisement for a hardware chain (think it was Mitre 10) … where at the playground the kids slagged off another child for being an Australian (implying that he wasn’t very capable with tools)

    Well, let’s see something else, eh?
    http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11540789
    102 houses built out of target of 39,000
    Two years after Auckland Council and the Government signed a “housing accord”, only 102 houses are known to have been built under its “fast-track” rules.
    In this case, it looks like the kiwis “are not too handy either” 🙂

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  4. The whole housing situation in NZ, as a prospective buyer, really leaves me scratching my head.

    Construction costs are shockingly high. International financial analysts all state that NZ property is considerably over priced and yet buyers just keep paying more and more? Wages aren’t inflating at anywhere near the rate of housing, so presumably we are either talking about foreign investors who still find the property good value/profit-generating compared to their home country or else the average Kiwi is mortgaged up to their eyeballs.

    And why are the houses so poor? Are their not rigorous building regulations like other countries?

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    • The buyers keep paying more and more …
      because, people are still being produced, but land isn’t.
      also, if you buy up a section, you can turn it into a block of flats.
      also, a landed property is one you can modify.
      And … WORLDWIDE, that is a problem now, banks everywhere finance the land companies for the initial purchase before the developments are sold piecemeal to buyers.
      From what I understand and cost, the typical house is sold for 5x the cost of materials and labour.
      So, developers only need to sell 20% to break even.
      Banks aren’t going to just close in on the developers while they owe money – because firesale prices won’t return their capital. They want to make a profit – the interest – and that can only happen when the houses are sold at full price. They’re willing to wait … since, other countries are now printing money too.

      and that’s why … the house is expensive:
      – lack of competition
      – future development potential
      – money being printed worldwide
      – people willing to pay
      – banks want interest and willing to wait
      – newer properties to cost even more …

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    • You can try changing the government … but that won’t make the houses cheaper … because the developers want to make money.
      If “the houses are cheaper” … it will become “the houses in the other area by the same developer are more expensive” since … the cheaper houses are SUBSIDIZED by the expensive ones.
      In short, unless you are expecting people to work for free (forced labour, communism) …
      the people are being told (certainly not verbally though, public relations is all about playing dumb and innocent to increase corporate profits) “yeah, we’re not going to provide houses unless you pay”.
      And no government can do otherwise, unless they’re willing to pay the developers themselves, or … print more money!
      Leading of course, to inflation. But the bubble has a long ways to go yet – because, people need somewhere to live, land (or consents) is scarce and takes a long wait, building takes time, and the banks want their interest.
      Of course, this is where people wake up to “failure of government” … but then again, government has only ever succeeded in raising the cost of business (alongside regulating basic utilities – at least that happens because … they want to get away with crime and corruption, and you can’t do that if the majority of the population is dissatisfied with the bread and butter issues).

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  5. Absolutely ! We have decided not to ever buy anything here. Best deal would be to buy some land , first check if it’s not owned by Maori. And build your own. But it will still be cold..no insulation, double glas although I discovered one house that had it. Electrical blankets might help you to survive three quarters of the year. Do check the nz loghome builders. They are not that expensive.

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    • Don’t forget that the land claims change.
      Recently the Maori king claimed the whole of Auckland.
      http://www.newstalkzb.co.nz/news/national/maori-king-lays-a-claim-for-auckland/
      Maori King lays a claim for Auckland
      Author Georgia Nelson, Section National, Publish Date Friday, 21 August 2015, 4:29PM
      Maori King lays a claim for Auckland
      The Maori King has used his annual speech at the Turangawaewae Marae to launch a claim for Auckland.

      The claim goes as far as the Mahurangi Peninsula, the Firth of Thames and across to the Manukau Harbour and Piha.

      In a rare public appearance in front of around 1000 people, King Tuheitia said he’s determined to start with the claim into Auckland.

      “I will now turn to a new era of rights and claims. On that, it’s destined to bring about problems and even disagreements, but I am obliged and responsible to go there.”

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      • PFF just to complicated for me…thanks for sharing though. The only homes I like in new Zealand are the loghomes. There are about two loghome builders around and I found a lovely small home for only $50000 !! This is very cheap for nz.. And might even be a bit warmer too. They might be so cheap because nobody wants them in new Zealand just because they are not the fashion here.

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